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EnergySector Fundamentals: Economic Analysis, Projections, and Supply Curves Chapter 9 6. For the mature market economies, the IEO (2005) reference case assumes that, in the long term, retirements of existing plants as they reach the end of their operating lives will not be balanced by the construction of new nuclear power capacity, and there will be a slight decline in installed nuclear capacity toward the end of the forecast. 7. Load firming is the acquisition of supply to fill a real or expected gap in guaranteed delivery of power to customers. Firm power is power or powerproducing capacity intended to be available at all times during the period covered by a guaranteed commitment to deliver, even under adverse conditions. 8. According to the EIA in 2004, retail sales of electricity increased to 3,548 billion kWh in 2004, a 1.7% increase from 2003 and a pace close to the historical growth rate. Revenue, however, increased to more than $270 billion in 2004, a 4.5% increase from 2003 and the second straight year of strong growth. All customer classes except transportation faced higher average retail prices in 2004, as the national average price across all sectors was 7.62 cents per kWh, up from 7.42 cents in 2003. 945 The average retail price in the residential sector increased to 8.97 ¢/kWh, a 3.1% increase from 2003. In the commercial and industrial sectors, average price increases were 2.0% and 2.9%, respectively. Higher fossil fuel prices to electricity generators led to higher wholesale power costs. Average enduse prices increased dramatically in states where natural gas fuels significant portions of baseload generating capacity – Texas, Mississippi, Louisiana, and Florida. 9. For instance, in 2002, MidAmerica Energy dropped a project in the Salton Sea area of California, due to constraints on transmission access and capacity, (M. Masri, chief of Renewable Programs, California Energy Commission, personal communication). 10. Power is defined as the rate of flow of energy past a given point. In “alternating current” circuits, energy storage elements such as inductance and capacitance may result in periodic reversals of the direction of energy flow. The portion of power flow that, averaged over a complete cycle of the AC waveform, results in net transfer of energy in one direction is known as real power. That portion of power flow due to stored energy, which returns to the source in each cycle, is known as reactive power. 11. Direct current (DC or “continuous current”) is the continuous flow of electric charge through a conductor such as a wire from high to low potential. 12. See California Energy Commission emergency siting process for 2000. 13. The energy attribute may be considered as a separate value, which is not purchased directly but which may be priced, such as renewable attributes, reliability, “cleanness,” etc. 14. Reactive energy (VARs) is defined as the imaginary component of the vector product of the voltage and current, each expressed as a vector and used to provide line stability. 15. Each surface complex is assumed to be composed of power turbines nominally rated at 60 MWe, and combined in modules dependent on the resource being accessed.PDF Image | Energy Sector Fundamentals
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